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I understand that NRV may not reflect actual market price. But is it right that if the inventory is reflected at market price, then it is said to be measured at fair value?
Because if the inventory is measured at market price, this means that it is an orderly transaction between market participants?
Thank you for clarifying me on the above,
Inventory is within the scope of IFRS 13
So the valuation is a best estimate of market price (i.e fair value) less cost of completion and disposal
Exam question – I would still use the abbreviation NRV
Thank you for your reply.
So you mean that NRV will generally be same as fair value?
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